EURUSD trades lower today after the Eurogroup finance ministers failed to reach an agreement on joint debt issuance. Spanish Government spokeswoman said that Europeans would lose trust in the European Union if there is no unified response to coronavirus outbreak crisis. The Eurogroup will continue tomorrow in a second attempt to find common ground.
The risk for euro increase as there are extreme voices in the countries of the south for the coronavirus bonds that will support the already battered economies. The Sentix Euro Break-up index has jumped over 130% above 13.4 the last week as the coronavirus crisis resurfaces the differences between south and north.
EURUSD is 0.34 lower at 1.0852, as the correction from two weeks high continues after yesterday’s short break. The technical picture is bearish despite the recent rebound from multi-year lows as failed to breach major resistance levels. Traders looking south unless the pair manages to break above the 50-day moving average.
On the downside, the initial support for the pair stands at 1.0829 the daily low. Next support level for EURUSD would be met at 1.0786 the low from yesterday’s trading session. If the pair breaks that support, then the next target for sellers is at 1.0768 the April 6 lows.
On the flip side, the first hurdle for the pair stands at 1.0902 the daily high. If the pair breaks that resistance then the next target is at 1.0928 the high from yesterday’s trading session. The next resistance for EURUSD is at 1.0974 the 50-day moving average.